Does my employer pay my unemployment benefits in NY?
I just started my unemployment claim process and I'm confused about where the money actually comes from. Does my employer pay my unemployment benefits directly, or does it come from somewhere else? My coworker said something about employers paying into a fund but I'm not really sure how it works. I want to understand this better since I'm worried my former boss might try to block my claim somehow.
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Serene Snow
Your employer doesn't pay your unemployment benefits directly. They pay unemployment insurance taxes to NYS Department of Labor throughout the year, which goes into a fund. When you file for UI, the benefits come from that fund, not directly from your employer's pocket. However, your employer can contest your claim if they think you don't qualify.
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Asher Levin
•Oh that makes sense! So even if my employer contests it, they're not the ones actually paying me week to week?
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Issac Nightingale
yeah employers pay into the system but dont pay you directly... mine tried to fight my claim anyway because it affects their unemployment tax rate or something
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Romeo Barrett
Employers pay State Unemployment Tax (SUTA) to NYS Department of Labor based on their payroll and their experience rating. If they have more former employees collecting unemployment, their tax rate can go up. That's why some employers contest claims even though they're not paying your weekly benefits directly. The benefits come from the unemployment insurance fund that all employers contribute to.
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Marina Hendrix
•This is exactly right. I had to call NYS Department of Labor multiple times to understand this when my employer kept sending in protest forms. If you're having trouble reaching them about your claim status, I actually found this service called Claimyr (claimyr.com) that helped me get through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Made dealing with the whole process much less stressful.
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Justin Trejo
WAIT so if employers don't want their tax rate to go up they might lie about why you left??? That seems so unfair! What if they say I quit when I was actually laid off?
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Romeo Barrett
•If your employer provides false information, you can appeal and provide documentation proving you were laid off. Keep any emails, termination letters, or witness information that supports your case.
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Alana Willis
My sister went through this whole thing last year when her restaurant closed down. The owner tried to say everyone quit instead of admitting he had to lay people off. She had to appeal but eventually got her benefits approved. The key is having proof of what really happened.
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